Accounting cycle is an accounting procedures of recording transactions，which is repeated in the same order during each accounting period.The first step in accounting cycle is the occurrence of a business transaction;the end of accounting cycle is the firm's year-end financial statement.Accounting cycle usually can be divided into the following steps:

(1)Analyzing transactions from source documents.

(2)Applying double-entry system to record transactions in journals.

(3)Posting the entries in the journals into the general(and the subsidiary) ledger accounts.

(4)Adjusting the general ledger accounts.

(5)Making closing entries，journalizing and posting them into ledger accounts.

(6)Preparing a trial balance.

(7)Preparing financial statements.

The various steps in the accounting cycle do not occur with equal frequency.Usually analyzing，journalizing and posting(steps 1-3)take place during each operating period，whereas accounts are adjusted and closed usually at the end of the accounting period.Statements are prepared only when management requires financial statements—usually at monthly or quarterly intervals.